In other words, when countries that were hitherto closed to trade and foreign investment open up their economies and go global, the result is an increasing interconnectedness and integration of the economies of the world. One of the best things about globalization is that it spreads different cultures and traditions worldwide which helps us learn from one another, making us more tolerant towards those who are different from ourselves as well as accepting our own differences as something special. Hi, I am an MBA and the CEO of Marketing91. The global financial crisis, for example, hit many nations hard. Our goal is to bring educated, relevant, and unique perspectives on global affairs through the form of articles and video. Transportation. When the firms realize and apply the Importance of Globalization, they make their tasks simpler at much-lowered costs and overheads. The word globe as we know it refers to earth. Our writers will help you fix any mistakes and get an A+! Pregnant women without access to traditional medical care can use their phonesto keep in touch with midwives. The Importance of Globalization in Higher Education | IntechOpen Those who support view globalization optimistically as promoting new growth and employment opportunities for low-income countries. World Health Organization (WHO) defines globalization as "The increased interconnectedness and interdependence of peoples and countries. Globalization has made the world more connected which allows us to work together towards the future by sharing ideas and experiences that will help us overcome any obstacles we might face, regardless of where they come from. As we know, it is the process through which the world stimulates into a unified network. World GDP has grown from about $50 trillion in 2000 to about $75 trillion in 2016, primarily as a result of economic interdependence and the increased global trade it allows. Concepts & Advantages Explained. They can also use their phones to track the prices of crops and find out which markets will bring in more money. And with globalization, the competition reaches its peak as the native players of any country face the competition from the outside firms luring and attracting their loyal customers with the products and services that are high on innovation and novelty. 1. The Rights Holder for media is the person or group credited. Advances in air and fast rail technology have facilitated the movement of people and products. And in such a scenario, large and known firms enjoy the power of monopoly in the market as they have been into the market for a longer period of time and have a huge list of loyal customers. Give me your paper requirements and I connect you to an academic expert. Cross-cultural exchanges of ideas, food, music, media, and language are just as valuable. The importance of Globalization is a phenomenon that involves the free movement of humans among different regions of the world, exchange of information, and open market for businesses. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries. Blockchain. In 2013, a textile factory building collapsed, killing more than 1,100 workers. In other words, when countries that were hitherto closed to trade and foreign investment open up their economies and go global, the result is an increasing interconnectedness and integration of the economies of the world. Your email address will not be published. Rapid technological advances have benefits other than economic ones. Introduction. 2013mba()- Chat with professional writers to choose the paper writer that suits you best. On this platform, I aim to utilize my passion for writing in the best possible manner, using it as a medium to share whatever knowledge I have with the readers. When you reach out to him or her, you will need the page title, URL, and the date you accessed the resource. National Geographic Society is a 501 (c)(3) organization. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Copyright 2007 - 2023, TechTarget Globalization enables countries to access less expensive natural resources and lower cost labor. In business, the term is used in an economic context to describe integrated economies marked by free trade, the free flow of capital among countries and easy access to foreign resources, including labor markets, to maximize returns and benefit for the common good. India, for example, is a country whose GDP has benefited immensely from globalization in the technology sector: Globalization also means that businesses can realize greater profits by tapping into previously untouched markets and taking advantage of lower local costs. September 28, 2021 by Zuha Salman Leave a Comment. In 2019, the summit was held in Osaka, Japan, and it addressed issues such as women's empowerment, climate change and artificial intelligence. Propelled by the efficiency or appeal of wireless communications, electronic commerce, popular culture, and international travel, globalization has been seen as a trend toward homogeneity that . Your email address will not be published. This not only benefits the foreign companies (in this case, American companies like Apple) but also helps the countries being invested in by increasing their exports, creating jobs, closing the technology gap, and overall, improving quality of life. Because of globalization, the world has become a much smaller place where distances between countries have been eliminated which allows people to do things much more easily and quickly than before. Because the world was able to communicate across boundaries, nations were able to work together to quickly produce vaccines for the virus. This . Together, we aim to promote a more educated future by providing a greater knowledge around the studies of economics and political science. However, this movement can also heighten the spread of disease and promote ideas that might destabilize political economies. Globalization makes us more productive by enabling us to use resources from around the world, which allows us to produce better results without having to increase our efforts or work hours. This sense of independence makes life much more enjoyable for those who embrace it as globalization continues to grow around us as we speak. All Rights Reserved. However, countries also enacted strict travel restrictions and many closed their borders to cut down on the free movement of people and spread of the virus. Whats the solution then? However, overall, the early 21st century has seen a dramatic increase in the pace of global integration. Above all they have underlined the importance of a better process of dialogue among different social actors if a fairer globalization is to be constructed. Writing, to me, is the smoothest way to explain things to others and share knowledge with them. CTRL + SPACE for auto-complete. For example, cell phones came quickly to the African continent, with cell phone use currently growing every year in sub-Saharan Africa and approaching 90% in countries such as South Africa. Cultural globalization | Pros, Cons, Examples, Impact, & Factors These globalization pros and cons show that a borderless world potentially offers many benefits, but with many enormous challenges, which need to be resolved for globalization to be workable. Owing to the above-mentioned reason, new and small firms find it difficult to find a strong foothold in the market. For example, Cuba sent doctors to Italy at the beginning of the pandemic to assist with the crisis as it developed there. Atmines in the Democratic Republic of Congo, where metals needed for electronics abound gold and tungsten, tin and tantalum armed militia groups, often using child soldiers, have taken over, keeping power with violence and trading minerals for guns. In other words, when countries that were hitherto closed to trade and foreign investment open up their economies and go global, the result is an increasing interconnectedness and integration of the economies of the . Plus there are so many opportunities for small as well as big players. Higher unemployment leads to discontent, strain on the social safety net, and lower tax revenue from income. The members of G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the United Kingdom, the United States and the European Union. The Importance of Globalization in the Economic Integration of the Save my name, email, and website in this browser for the next time I comment. You can use a phone to reach someone instantly, no matter how far across the globe that person is. Create a free account and access your personalized content collection with our latest publications and analyses. Difficulty navigating these systems may lead to impediments in expanding to new countries and severe repercussions for missteps made. Furthermore, we wouldnt see as much cultural diversification as we do today without international trade. Hundreds of philosophers and social observers have taken sides for many years, either supporting or opposing the standard dimension of global processes. Foreigners come to seem completely unfamiliar under such conditions. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization.Into the FutureRegardless of the downsides, globalization is here to stay. Why Globalization Is Important - Conclusion With all this being said, globalization is important because many positive effects on society, including making us more productive, promoting cultural diversity, enabling us to prepare for upcoming challenges, and making us more tolerant towards others. These 10 Countries Have Been Hit Hardest by Food Inflation, Earthquake in Turkey and Syria: How satellites can help rescue efforts, Turkey-Syria earthquakes: A seismologist explains what has happened, These are the main uncertainty drivers around the world, according to the IMF, Hites Ahir, Nicholas Bloom and Davide Furceri. In addition to economic trade, the Silk Road was a route for cultural trade among the civilizations along its network. Sometimes they must contend with different types of legal and banking systems entirely. Imagine a doctor in Chicago reading The New York Times and the Guardian and Al Jazeera. If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. The customers have access to the products and services offered by international brands. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. As borders between different countries become more permeable, it becomes much easier for citizens of one country to experience other ways of living and visiting different places. You can get on a plane and in a matter of hours show up halfway around the world. Additionally, the rise in urbanization and the closer integration of the world economy have facilitated global interconnectedness. David is a 19-year-old Canadian student currently attending the University of Guelph. Globalization is about the interconnectedness of people and businesses across the world that eventually leads to global cultural, political and economic integration. Globalmillennial.org. 2. Giddens likes to label these people as, those who view globalization as synonymous to the westernization and Americanization.. Does it go without saying that the Armenian Culture, for instance, is way older and richer than that of the United States, but have you ever heard of it? This threatens to undermine investment and the shared understanding that is vital to address our shared threats. No matter how much you believe in your argument, one should not outcast those who oppose them because that ruins the whole point of liberal thought casing. Setting up a business in a new country, especially a developing country, requires substantial upfront capital. One of the biggest benefits of Globalization is that there is a free movement of goods and services manufactured and offered by the firms on national and international levels. In continuation of the above-mentioned point where we discussed the competition in the market. I could go on about this forever! Global competition in the markets leads to both quality and affordability. Globalization is the process in which people, ideas and goods spread throughout the world, spurring more interaction and integration between the world's cultures, governments and economies . China is a prime example of a country that has benefited immensely from globalization. For more details, review our .chakra .wef-12jlgmc{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;font-weight:700;}.chakra .wef-12jlgmc:hover,.chakra .wef-12jlgmc[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-12jlgmc:focus,.chakra .wef-12jlgmc[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);}privacy policy. A modern example of this is American companys outsourcing labour to Mexico and China because labour costs are cheaper in these areas. Globalization has altered the way we live and earn a livelihood. For example, quite many US and UK companies outsource their customer service call center services to the Asian markets as the manpower is quite nominal as compared to their home countries. We do not assert that these events are unrelated to globaliza-tion, or that they are unimportant. Globalization Helps With Economic Growth, 4. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. .chakra .wef-facbof{display:inline;}@media screen and (min-width:56.5rem){.chakra .wef-facbof{display:block;}}You can unsubscribe at any time using the link in our emails. Essay On The Importance Of Globalization | ipl.org Spain is a permanent guest of the organization. Advances in technology have enabled and accelerated this flow and the resulting international interactions and dependencies. What is a Service Level Agreement or SLA? To say that globalization is always subjective and destructive is also a primitive conclusion. Globalization changes the way nations, businesses and people interact. The firms . Today, we as a global society, benefit from Globalization not only in economic means, but in social, cultural, political, and environmental circumstances. These technological advances have been especially pronounced in transportation and telecommunications. Realization of the Importance of Globalization is a win-win situation for all the parties involved. This of all ideologies linked to globalization is the most sugar-coated one; because its unethical (in my own point) to decide for the people and speak on their behalf. Benefits and Challenges of Globalization Globalization enables access to different kinds of information across borders, which people use to improve their lives in various ways. Basically, when we talk about Globalization, we arent just talking about the trade of goods and exchange of capital, we must realize the various social and cultural opportunities that have been realized with international trade. Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone. Globalization in the Modern World - ThoughtCo
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